Module 1

P. Alvarez and V. Martin June 29, 2009

Learning Objectives
At the end of this module, you will be able to: Sketch a basic value stream map Demonstrate basic value stream analysis Recognize steps for process improvement using value stream mapping and analysis

Hot Dog Stand Process Map

11- Clean up

1- Take order

9- Deliver to customer

8- Add beverage

yes

7Order OK?

6Out order yes

no

10-Set up

2In order

3- Cook Hot Dog

4- Put in a bun, add garnishes, wrap

5Another dog? no

How can Sasha and Andy improve their productivity to meet their customer demand?

Five Lean Thinking Fundamentals Specify value: Value is defined by customer in

terms of specific products and services Identify the value stream: Map out all end-to-end linked actions, processes and functions necessary for transforming inputs to outputs to identify and eliminate waste Make value flow continuously: Having eliminated waste, make remaining value-creating steps flow Let customers pull value: Customers pull cascades all the way back to the lowest level supplier, enabling just-in-time production Pursue perfection: Pursue continuous process of improvement striving for perfection

What is Value Stream Mapping?

Value Stream mapping is a method of creating a one-page-picture of all the processes that occur in a company , from the time a customer places an order for a product, until the customer has received that product at their location. The Goal is to depict material and information flows across and throughout all Value-Adding Processes required to produce and ship the product to the customer. Value Stream maps document all of the processes used to produced and ship a product, both Value-Adding (VA) and Non-Value Adding (NVA or waste) processes.

Why Value Stream Map?

During the team creation of a Value Stream Map (VSM), business and manufacturing waste that occur in the processes can be easily identified. Once the Current State Value Stream Map (CSVSM) is created, it becomes the baseline for improvement and for the creation of a Future State Value Stream Map (FSVSM). The FSVSM can then be used as a World Class Manufacturing implementation road map.

Summary :Value Stream Map (VSM)

A tool used to improve a process by identifying added value and eliminating waste A process map with process data added Some examples of process data

Times: processing, wait, cycle Quality: number of rejects Inventory Resources

Number of people Space Distance traveled

Whatever else is useful for analyzing the process

Only value-added data and graphics should be used!

Steps for Creating a VSM

1. Define customer value 2. Create a current state map
Walk the process to identify tasks and flows Gather data on resources, time, quality for each

3. Analyze map to determine opportunities for improvement

Identify value-added and waste Brainstorm actions to eliminate waste and add value

4. Create future-state map to visualize the desired state 5. Create action plans to move towards futurestate

S&A Customer Value

11- Clean up

1- Take order

9- Deliver to customer

8- Add beverage

yes

7Order OK? no

6Out order yes

10-Set up

2In order

3- Cook Hot Dog

4- Put in a bun, add garnishes, wrap

5Another dog?

no

Current Demand 50 customers 100 hot dogs

Customer Value Good food Faster service

S&A VSM
T=48sec T= 11 sec T= 60sec Qual= 100% T=10 sec Qual= 100% Qual= 90%

11- Clean up

1- Take order

9- Deliver to customer
T= 30sec Qual= 100%

8- Add beverage

yes

7Order OK? no

6Out order

T= 33sec

yes 5Another dog?

10-Set up
T= 48sec Qual= 100%

2In order

3- Cook Hot Dog

4- Put in a bun, add garnishes, wrap

no
T= 30sec T= 110sec Qual= 100% T= 44sec Qual= 100% T= 22sec

Display of data collected during Lean Thinking

Value Stream Analysis

Sasha Andy

With your team, take 10 minutes to

Identify with colored dots the VAT (green), NVAT

(yellow) and WT(red) value stream activities Calculate the total

Value added time Non value added time Wait time

Calculate the total time Sasha and Andy spend on a

single order

Be ready to report your answers to the class

S&A Takt And Cycle Times

50 customers 100 hotdogs

Open from 10 AM to 2PM

11- Clean up

1- Take order

9- Deliver to customer

8- Add beverage

yes

7Order OK? no

6Out order yes

10-Set up

2In order

3- Cook Hot Dog

4- Put in a bun, add garnishes, wrap

5Another dog? no

Takt time=

Available time
Customer demand

4hrs x 60min/hr 50 customers

= 4.8min = 288 seconds

Cycle time = 446 sec = 7.43 minutes

Summary

S&A Value Stream Analysis (VSA) Current production (50 customers) is a little
below current capacity (64 customers) of Andy and Sasha
Process improvement needed to meet growing

demand

Andy and Sasha are both underutilized

But utilization is not balanced between them

Cycle time of 7.43 min per customer too long

Should be able to shorten cycle time to meet

demands of customers for faster service

Bottom line Sasha and Andy should implement process improvement for week 3 to meet growing demand!

Improvement Brainstorm

Help Sasha and Andy figure what to improve

How can utilization be improved? How can cycle time be reduced? What has to be done to serve 75

customers? What has to be done to serve 100 customers?

Spend 10 minutes with teams and then discuss with class

Why is VSM a Useful Tool?

Helps visualize interactions and flows Shows linkages between information and product flows Provides a common language for talking about a process Helps to identify:

the constraint(s) - any resource whose

capacity is less than customer demand; wastes as well as their sources

Tips for Creating a VSM

Involve entire team Actually walk the process - follow the material and information through the process, starting at the beginning Use Post-it notes and butcher paper and draw out later Use symbols or icons that are meaningful to the process but common enough to be understood by all involved

VSM Symbols

Types of VSM

Traditional VSM - most common type in LEAN Swim-lane VSM well suited to admin. tasks Shingo VSM different approach but not as clear as traditional more complex to show metrics Castle VSM very much like a spreadsheet with data. Not visual, harder to spot improvement areas quickly. Listed VSM for simple value streams and highly automated repetitive streams, difficult to interpret And more can you spot the type?

Samples of VSMs
Take note of the ones labelled future state . Can you figure out what this means? This will lead us to module 2.